Valmiki Corporation scam: SIT freezes 197 bank accounts used to transfer money

Bengaluru: The Special Investigation Team (SIT) has identified and frozen 197 bank accounts on Saturday, used to transfer money in the multi-crore scam at the Karnataka Maharshi Valmiki Scheduled Tribes Development Corporation.

A top police source confirmed the development to DH and said that recoveries were on track.

“From the Union Bank of India’s MG Road branch, the money was transferred to 18 bank accounts belonging to First Finance Credit Co-Operative Society Limited in Hyderabad,” the source said. “This was the first level. At the second level, the money was further transferred from the 18 accounts to the 197 accounts. All the accounts have been frozen and money will be recovered by the SIT.”

DH had reported previously that Rs 89.62 crore was lien marked to First Finance Credit Co-Operative Society Limited "as the funds are transferred wrongly".

So far 11 people, including Satyanarayana, Chairman of First Finance Credit Co-Operative Society Limited, and JG Padmanabha, the suspended MD of the corporation, have been arrested by the probe team. Total recoveries amount to Rs 14 crore, the source quoted had previously said.

The alleged unauthorised transfer of Rs 187 crore belonging to the corporation came to the fore after accounts superintendent Chandrashekhar died by suicide on May 26 at his residence in Shivamogga.

The deceased had left behind a note, alleging the misappropriation of funds, and blamed his death on Padmanabha, Parashurama G, the Accounts Officer, and Union Bank of India Chief Manager Suchismita Rawal.

Minister for Tribal Welfare B Nagendra resigned from the Cabinet after the alleged scam broke.